We know that the e-commerce industry is evolving very fast and there are a lot of mergers and acquisitions taking place every year. However, when one of the bigger players does it then it is a big thing in the industry. Similar was the case with Walmart as they announced in 2017 the acquisition of an e-commerce outdoor retailer named Moosejaw. With this acquisition, Walmart wanted to enter the outdoor apparel space with a player that was already established in the market.
Now, we are reporting to you that Walmart has decided to sell the outdoor e-commerce retailer Moosejaw to its rival, Dick’s Sporting Goods. It is worth noting that the idea of selling something such as a company can’t be seen as a failure as it might be used as a flipping technique as well. However, Walmart’s decision to sell Moosejaw after just six years of acquisition does raise eyebrows. Also, the company did not share any revenue or customer numbers while announcing this deal but only said that the company grew a lot during that time.
From the statement, it does look like Walmart was not successful in running Moosejaw and that could be one of the reasons why it has decided to sell the company. In February 2017, Moosejaw was acquired by Walmart for $51 Million. Now, the amount at which Dick’s Sporting Goods is buying Moosejaw is not known yet but we will know that for sure in the coming months as more details are revealed.
Walmart, in an email statement, said “Moosejaw joined the Walmart family to expand our assortment and expertise in the specialty outdoor category, and make Moosejaw accessible to more customers,”. “Since acquiring Moosejaw, Walmart.com has grown from 70 million to hundreds of millions of items. While Moosejaw operated as a standalone business, it was able to leverage Walmart’s scale and customer reach to propel Moosejaw Madness. We’re excited about this new opportunity for Moosejaw to reach even more athletes and outdoor enthusiasts in its mission to make the outdoors more inclusive.”
With this acquisition, Dick’s Sporting Goods is looking to not only enter the apparel space but also take advantage of Moosejaw’s loyal customer base.